Kotak Mahindra announces stock split in 1:5 ratio

New Delhi: Kotak Mahindra Bank on Friday said its board has approved a 1:5 stock split to improve share liquidity and make the stock more affordable for investors. The decision, taken on the bank’s 40th foundation day, will subdivide each existing equity share of face value Rs 5 into five shares of face value Rs 1 each, fully paid-up, the bank said in a regulatory filing.

Kotak said the move is aimed at boosting affordability and encouraging wider market participation, particularly from retail investors. The stock split is subject to regulatory and statutory approvals.

Part-time Chairman C S Rajan said the milestone reflects the bank’s commitment to creating long-term shareholder value. “As we celebrate 40 years of our journey, we reaffirm our commitment to a Kotak for the future,” he said. Managing Director and CEO Ashok Vaswani added that the split underscores the bank’s focus on inclusivity and enabling more investors to participate in its growth story.

The board has also cleared an amendment to the capital clause of the bank’s Memorandum of Association to reflect the revised share structure post-split. The process is expected to be completed within two months of securing all required approvals.